In such cases, the Cash Book with bank column in addition to the cash and discount columns is found convenient. A firm normally keeps the bulk of its funds at a Bank; money can be deposited and withdrawn at will if it is a current account. 1300 Jan 5 Paid to Ram & Co. Rs.3950 Discount Received Rs.
Cash Column, Bank Column and Discount Allowed Column on the debit side and Cash Column, Bank Column and Discount Received Column on the credit side. Three column cash book is a cash book which has three columns on each side; one column to record discount allowed, another to record discount received, another to record cash transactions and yet another to record bank transactions. 8. In such a Cash Book, cash columns and bank columns represent cash a/c and bank a/c respectively.
It means the Cash Book now will have three "Amount Columns on each side, i.e. Double column cash Book 2012 Jan 1 Paid rent Rs. A three column cash Book is a cash book which contains bank column along with cash and discount columns. Such type of cashbook is known as three-column cashbook.
Two accounts, cash and discount are combined in this book. Probably payments into and out of the bank will be more numerous than strict cash transactions.
50 Jan 6 Received from Gupta & Co. Rs. 9900 Discount allowed Rs. Double column cash book A cashbook with cash and discount column is called double column cashbook.
Many companies will offer a discount to their debtors if they pay quickly. Three-column Cash Books and Discounts Cash Discounts for quick payment It is better for the firm if as customer pays their account quickly. 100 Double column cash Book Date …
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